1. Helps You Budget Accurately

Bookkeeping is vital to any business because it makes it

 so much easier to budget. With your income and

 expenses properly organised, it’s simple to review your

 financial resources and costs.

A budget creates a financial roadmap for your business.

 With a budget in place, you can plan for future expenses

 for yourbusiness to help with growth. If you don’t keep

 accurate and up to date books, it’s a lot harder to get an

 accurate budget because it’s all mainly guesswork.

 2. Keeps You Prepared for Tax

As annoying as it is, businesses have to file their taxes 

at the endof the tax year. With a bookkeeping process in 

place, you’ll have financial information ready for tax 

season and the taxman won’t be breathing down your 

neck.

 3. Maintains Organised Records

That last-minute stress of trying to find a crucial piece of 

businesscan lead to missed deadlines and some small 

errors creeping through. Businesses of any size can’t 

afford to make any mistakesand bookkeeping regularly 

can help with that.

By doing your books often, staying on top of them and 

not leaving it to the last second, you’ll be able to maintain 

organised records.Over time, it’ll make it much easier to 

find the bits of information you desperately need in no time.

4. Easier to See Business Targets

Every business wants to grow, but poor financial records 

can stop that from happening at the speed you want. 

With no accuratenumber or data to analyse, it’s not easy 

to set yourself anygrowth goals.

Again, it’s going to be because you’re guessing everything

so you’ll be quite disappointed that you didn’t hit the 

targets you set out previously. By staying on top of your 

books and keeping regular financial records, you can map

out your business goals more

 accurately and achieve growth.

5. Meeting Government Regulations

We all know that the government always comes out with 

a new initiative which is mainly to make things easier for 

them. Most recently, it’s the Making Tax Digital (MTD) 

initiative with which thegovernment is expecting 

businesses to comply.

It’s exactly what it says on the tin - businesses will have 

to start doing their taxes digitally through the use of 

applications and software. In this case, you’ll not only 

need to do your books but also use an app for it as well.

In all honesty, if you utilise an easy-to-use app then the 

process is quite simple. Plus, it’ll stop you from facing 

any penalties and it means you don’t need to waste 

money on outsourcing your books.

1. You owe tax or want to receive a refund

If you are a resident of Canada for part or all of a tax year, you must file a tax return if you owe tax or want to receive a refund. If you owe tax, you should file on time to avoid late fees.

2. Recover any tax you overpaid from your pay cheque

You may have had too much tax deducted from your pay cheque and not benefited from all the deductions and tax credits you were entitled to.

3. Take advantage of refundable tax credits

Examples of refundable tax credits are: GST/HST Credit, or the Canada Workers Benefit

 If you don’t file a return, you won’t be able to confirm your eligibility for credits like these.

4. Create contribution room in an RRSP

If you have earned income, you can make RRSP

 contributions, which reduce your net income. If you don’t use your contribution room

 in any year, you can carry the unused amounts to future years. Learn more about RRSPs.

5. You might be eligible for the Canada Learning Bond

for your child’s education savings

If your income is low or moderate, you may be eligible for additional Canada Education Savings Grant (CESG) support as well as the Canada Learning Bond (CLB), which is a government grant added to your RESP

. Filing your tax return will declare your income level and help determine your eligibility.

6. Confirm your eligibility for some benefits

The CRA relies on information from your tax return to confirm eligibility for some benefits, such as the Canada Child Benefit (CCB). If you receive the Old Age Security (OAS) pension

, your tax return confirms whether your income level will reduce the amount of the payments you receive.

7. Peace of mind

Staying up to date on filing your taxes is an important step in keeping your finances in order. If a crisis hits, this will be one less thing you or your family will need to worry about.